The African Continental Free Trade Area will cover a market of 1.2 billion consumers and a GDP of 2.5 trillion US dollars.
The AfCFTA will cover a market of 1.2 billion consumers and a GDP of 2.5 trillion US dollars.
Photo: © AU Foundation

31.05.2019

<< First < Previous Page 1 Page 2 Page 3 Page 4 Page 5 Next > Last >>
The intra-regional agreement of the African Continental Free Trade Area seeks to address the continent’s tough structural problems. So far, intra-African trade has remained well below its potential, and only accounts for around 17 per cent of Africa’s overall trade volume. In comparison, in the European Union, more than 60 per cent of goods is traded within Europe.

The African Continental Free Trade Area (AfCFTA) Agreement entered into force on the 30th May, 2019. This date marks 30 days after the 22nd member states' ratification with Gambia was deposited. The AfCFTA will be launched officially on the 7th July, 2019, at an exceptional African Summit to be held in the city of Niamey, in the Republic of Niger. 

According to Financial Times and others, the AfCFTA will be the largest free trade area since the establishment of the World Trade Organization in terms of the number of countries participating in the area. Most importantly, the AfCFTA will cover a market of 1.2 billion consumers and a GDP of 2.5 trillion US dollars.

The agreement seeks to achieve a gamut of objectives, inter alia promoting and attaining sustainable and inclusive social and economic transformation of the African Union Member States. It aims to create a continental single market for goods and services, facilitate the movement of capital and natural persons and investments, enhance the competitiveness of the economies of AU Member States within the continent and the global market and promote industrial development through diversification and regional value chain development.

Knocking down the tariffs

Huge obstacles need to be cleared, not least the fact that the deal is a basic framework that will lack teeth until many crucial details are worked out.

<< First < Previous Page 1 Page 2 Page 3 Page 4 Page 5 Next > Last >>